"Harlan Lunsford" <hnslunsford[at]bellsouth.net> wrote
- quote -




There are some things my clients do that I never want to know about.


As the saying goes.....I'll catch it on 60 Minutes.







--
Paul A. Thomas, CPA
Athens, Georgia

--
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Phil Marti wrote:
- quote -

I think Seth raised a very good point. We don't have clients who
always make the rational decision and only tell us about it after the fact.

Now then, IF all clients would just call before they do something,.......~

Christmas ChEAr$,
Harlan

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"Ernie Klein" wrote:

- quote -

So why not just move the stock to the taxable account and skip the sale &
purchase commissions? Perhaps not rising to the level of legal
incompetence, but definitely due for a talking to.

--
Phil Marti
Clarksburg, MD

--
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In article <PtGbj.19020$y54.8314[at]trnddc07> ,
"Phil Marti" <prm20871[at]verizon.net> wrote:

- quote -

Perhaps one has to sell off part of their portfolio to take a RMD from
an IRA and wishes to reinvest and maintain the same portfolio in a
taxable account (after taxes are withheld of course). If one is
invested for the long term and doesn't try to "time" the market, it is
very possible that some assets may have gains and some may have losses,
particulary if one has been reinvesting all dividends and gains.

I hope I won't get committed if such something like that happens <g> .

--
-Ernie-

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"Seth" wrote:

- quote -

Your concerned relatives have you committed. Why would anyone sell for a
loss that provides no tax benefit just to buy back the same stock?

To answer your question, no, there's no adjustment to basis in the taxable
account.
--
Phil Marti
Clarksburg, MD

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In article <uiBbj.32203$lD6.10933[at]newssvr27.news.prodigy.net> ,
Alan <sfcnm-mtm[at]yahoo.com> wrote:

- quote -

What if you lose money on a stock trade in your IRA, and buy back the
stock in a taxable account? Is your basis raised by the IRA's loss?

Seth

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Alan wrote:
- quote -

However, the related-party buyer can exclude the disallowed loss from
subsequent gain, unless the disallowed loss was subject to wash sale
rules. No such luck if sold at a loss. See IRS Pub 550.

Side thought: wouldn't it be interesting to have list of losses that,
for tax purposes, are disallowed or excluded or unrecognized forever.
Such as AMT exclusion items, basis step-up/step-down at death, capital
loss carryover at death, etc.

-Mark Bole

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KEBSCHULLW[at]aol.com wrote:
- quote -

has based its ruling on. The ruling is saying that an IRA, a
trust established for the sole benefit of the taxpayer or his
beneficiaries, that acquires substantially identical securities
is merely a refinement of title and is disregarded for purposes
of Sec. 1091. This is not unexpected as many of us have said
that the IRS would probably one day use the related party rules
to disallow any loss in one's tax account if the IRA violated the
61 day rule.

In addition, the ruling is informing all of us taxpayers that if
one does buy substantially identical securities in one's IRA
within the requisite time period, then the disallowed loss in
your taxable account is no longer available to you as you have
effectively moved the asset into a tax-deferred trust. This is
not the first time tax law has disallowed losses "forever."
Today, if a taxpayer sells an asset to a related party at a loss,
the loss is disallowed and is lost forever. Neither the seller
nor the buyer of a related party loss transaction gets the to
take the loss.

--
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On Dec 21, 1:56�am, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

That is exactly why the wash sale rule shold only apply to
transactions in a market account. What goes on in a IRA account is
irrelevant when it comes to the wash sale rule.

Cheers.

- quote -

And not only that, if there was a gain on the property it will be
taxed at the regular tax rate.

Cheers,

WDK

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <5759253c-5736-450a-8ee5-0a65a420854d[at]i29g2000prf.googlegroups.com> ,
<KEBSCHULLW[at]aol.com> wrote:
- quote -



The IRA account is not a capital asset, so cost basis of an IRA
is not applicable. IRA Tax basis, meaning unrecoverd nondeductible
contributions, share the word basis, but that's all.



Is it common sense to say that a parent who sells his rental property
at FMV at a loss to Cousin Alice gets to claim that loss, but if sold at
FMV/loss to Junior, that loss flys away, forever?
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

On Dec 20, 3:40 pm, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

THAT IS UNBELIEVABLE !

- quote -

Under § 408(e)(1), generally, an individual retirement account is
exempt from
taxation.

Under §§ 408 and 72, any amount distributed from an individual
retirement
account is includible in the distributee's gross income for the year
of the distribution
unless it is properly allocable to the account owner's basis in the
account. Under
§ 408A, a similar income inclusion rule applies to nonqualified
distributions from a Roth
IRA. An individual has basis in an individual retirement account only
to the extent that
the account includes nondeductible contributions.

Section 1091(a) provides that in the case of any loss claimed to have
been
sustained from any sale or other disposition of shares of stock or
securities where it
appears that, within a period beginning 30 days before the date of
such sale or
disposition and ending 30 days after such date, the taxpayer has
acquired (by purchase
or by an exchange on which the entire amount of gain or loss was
recognized by law),
or has entered into a contract or option so to acquire, substantially
identical stock or
securities, then no deduction shall be allowed under § 165 unless the
taxpayer is a
dealer in stock or securities and the loss is sustained in a
transaction made in the
ordinary course of such business.

Section 1091(d) provides rules for determining the basis of stock or
securities the
acquisition of which resulted in the nondeductibility under § 1091 (or
corresponding
provisions of prior law) of the loss from the sale or other
disposition of substantially
identical stock or securities.


NOW GET THIS!

- quote -

"The loss on the Sale of stock is disallowed under § 1091. A's basis
in the
individual retirement account or Roth IRA is not increased by virtue
of § 1091(d). "

Does this mean what I think it means? That the loss is FOREVER?

If so,

1. That defies COMMON SENSE; it's not what happens if the purchase of
the replacement stock is outside of an IRA.


Cheers,

WDK

This issue comes up every year. The IRS has now addressed it in
Revenue Ruling 2008-05
(http://www.irs.gov/pub/irs-drop/rr-08-05.pdf).

Anyone care to guess which way they came down?
Hint: See Security First National Bank of Los Angeles, 28 BTA 289
(1933). yes... that is 1933.